Diem withdrew the application for a license in Switzerland

by in Cryptocurrency News


The project behind the development of the digital currency, Diem, has withdrawn an application for a license as a payment system in Switzerland. This was reported by the local Financial Market Supervision Authority (FINMA).

The Swiss regulator explained the withdrawal of the application by the fact that Diem plans to launch a payment system from the United States at the first stage since the project will initially be focused on the American market and based on the dollar.

Diem was going to issue a stablecoin immediately after receiving permission from FINMA, and in April the media reported that a pilot project with a digital currency pegged to the US dollar would be launched in 2021.

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Recall that the Facebook-backed project Diem was previously called Libra. After the rebranding, Facebook was threatened with a lawsuit, and German Finance Minister Olaf Scholz said more than just a rebranding of the digital currency would be required to allay regulators' concerns about its launch in the EU.